Indian government is trying very aggressively to attract foreign direct investment (FDI) and FDI is coming into India these days in a satisfactory way. I have been writing about South Asian and Indian business for the last 4 months and almost on a daily basis, I have been reporting about FDI coming to India. The interesting thing is that Indian companies have become matured and strong enough to expand their business outside of India. In other words, Indian companies have started to invest in foreign countries in large scale. I found an excellent article of Ajay Khanna in the Financial Express titled, 'India Inc is on a global shopping spree'. I found this part of the article very interesting:
"No wonder, foreign direct investment (FDI) outflows from India now exceed inflows. June alone saw the closure of 10 cross-border big time deals with a combined transaction value of $1.5 billion. Around 76 deals worth $5.2 billion were cut in six months between January and June this year. In comparison, the whole of 2005 saw 136 deals at a value of $4.7 billion. This could well be the beginning of a global presence for Indian companies. In Unctad’s outward FDI performance index rankings covering 132 economies, India improved its rank from 80 in 1990 to 54 in 2004."
Indian companies may have started to go abroad on a large scale but the reality is that they have still some catching up to do compared to companies of China, Korea, Japan and even Malaysia. So, the next challenge is to catch up the big companies of Asia in terms of global presence.
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